VCs make money two ways: management fees, and a cut of the returns. The best VCs expect to make most of their money on the returns. Yes, the bad VCs are mostl

VCs make money two ways: management fees, and a cut of the returns. The best VCs expect to make most of their money on the returns. Yes, the bad VCs are mostly interested in management fees. But we avoid those. So YC-funded companies rarely encounter them. Actually the distaste is somewhat mutual: the lamer VCs prefer to invest in companies founded by suits. Not sure exactly why. Could be because they're all about looking good on paper. Or it could be just because the VCs are suits themselves.